Michael McDowell
Ceist:46 Mr. M. McDowell asked the Minister for the Environment the plans, if any, he has to control or deter the growth in house prices; and if he will make a statement on the matter. [11670/97]
Written Answers. - House Prices.
The rate of house price increase reflects the remarkable progress of the economy in recent years including low interest rates, increased incomes and unprecedented employed growth, with changing demographics. New house building has been at record levels since 1995. Our 1996 level of new housing output, relative to population, was the highest in Europe and at 33,725 completions exceeded the forecast housing demand of 31,000 per annum for the period 1996-2001 contained in the recently published ESRI Medium Term Review. It is clear, therefore, that the supply of housing is responding well to the increased demand and in fact, housing completions in the first three months of 1997 are 12 per cent ahead of the same period in 1996. I consider that the increased level of supply, with action being taken by other public authorities, should help to moderate the rate of house price increases.